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The Buckle, Inc. Reports Fourth Quarter and Fiscal Year 2006 Net Income

KEARNEY, Neb., March 13 /PRNewswire-FirstCall/ -- The Buckle, Inc. (NYSE:BKE) announced today financial results for the fourth quarter and fiscal year ended February 3, 2007.

Net sales for the 14-week fourth quarter ended February 3, 2007 increased 14.1 percent to $175.0 million compared to net sales of $153.4 million for the 13-week fourth quarter of fiscal 2005. Comparable store net sales for the fourth quarter rose 4.8 percent from comparable store net sales for the same 14-week period last year.

Net sales for the 53-week period ended February 3, 2007 increased 5.8 percent to $530.1 million from net sales of $501.1 million for the 52-week period ended January 28, 2006. Comparable store net sales for fiscal 2006 were flat compared to the same 53-week period last year.

Net income for the fourth quarter of fiscal 2006 was $22.1 million, or $0.77 per share ($0.73 per share on a diluted basis), compared with $19.1 million, or $0.66 per share ($0.64 per share on a diluted basis) for the fourth quarter of fiscal 2005.

Net income for the fiscal year ended February 3, 2007 was $55.7 million or $1.93 per share ($1.86 per share on a diluted basis), compared with $51.9 million or $1.76 per share ($1.69 per share on a diluted basis) for the fiscal year ended January 28, 2006.

Earnings per share and the weighted average shares outstanding for the prior year fourth quarter and year-to-date periods have been adjusted to reflect the impact of the Company's 3-for-2 stock split paid in the form of a stock dividend on January 12, 2007.

The Company adopted Statement of Financial Accounting Standards ("SFAS") No. 123R, Share-Based Payments, ("SFAS No. 123R") at the beginning of fiscal 2006. The additional compensation expense recognized under SFAS No. 123R impacted the Company's basic and diluted earnings per share by 3 cents and 5 cents per share for the fourth quarter ended February 3, 2007 and for the full fiscal year 2006, respectively. The fourth quarter and year-to-date impact of SFAS No. 123R includes 2 cents of stock option compensation expense related to the accelerated vesting of certain stock options during the fourth quarter. The accelerated vesting triggered the early recognition of compensation expense related to the stock option grants, which the Company had been recording on a straight line basis over the previously expected remaining vesting period through December 30, 2008. No compensation expense related to stock option grants was recognized by the Company for the prior fiscal year 2005.

During the fourth quarter, the Company achieved its performance goals on the 2006 non-vested stock grant. This changed the Company's estimate of the number of non-vested shares granted by the Company that would ultimately vest. This increase in the number of shares resulted in incremental compensation expense for the fourth quarter that had a 2 cents per share impact on the Company's reported basic and diluted earnings per share for the quarter.

During fiscal 2006, the Company purchased and retired 654,300 shares of its outstanding common stock at an average price of $24.52 per share. These shares were purchased pursuant to the 1,500,000 share corporate stock repurchase program authorized by the Board of Directors. The Company had 380,100 shares remaining as of February 3, 2007 to be purchased to complete this authorization. The average price and number of shares authorized and purchased above have been adjusted to reflect the impact of the Company's 3-for-2 stock split paid in the form of a stock dividend on January 12, 2007.

As of February 3, 2007, the Company operated 350 retail stores in 38 states compared with 338 stores in 38 states as of January 28, 2006.

Management will hold a conference call at 10:00 a.m. EDT today, to discuss fourth quarter results. To participate in the call, please dial (800) 398-9386 and reference the conference code 865593. A replay of the call will be available for a two-week period beginning March 13, 2007, at 1:30 p.m. EDT by dialing (800) 475-6701 and entering the conference code 865593.

Headquartered in Kearney, Nebraska, The Buckle, Inc. is a retailer of casual apparel, footwear and accessories for young men and women. During February, the Company opened one store and closed one store. It currently operates 350 retail stores in 38 states compared with 340 stores in 38 states at this same time a year ago.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995; All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors which may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

Note:  News releases and other information on The Buckle, Inc. can be accessed
                      at www.buckle.com on the Internet.

    Contact:  Karen B. Rhoads, Chief Financial Officer
              The Buckle, Inc.
              308/236-8491

                          Financial Tables to Follow



    THE BUCKLE, INC.

    STATEMENTS OF INCOME
    (Amounts in Thousands Except Per Share Amounts)
    (Unaudited)

                             Fourteen    Thirteen    Fifty-three    Fifty-two
                                   Weeks Ended               Weeks Ended
                            February 3,  January 28,  February 3,  January 28,
                               2007        2006          2007        2006

    SALES, Net of returns
     and allowances          $174,986    $153,357      $530,074     $501,101

    COST OF SALES
     (Including buying,
     distribution and
     occupancy costs)          99,416      89,064       322,760      307,063

         Gross profit          75,570      64,293       207,314      194,038

    OPERATING EXPENSES:
      Selling                  35,490      30,474       107,592      100,148
      General and
       administrative           8,447       5,494        20,701       17,568
                               43,937      35,968       128,293      117,716

    INCOME FROM OPERATIONS     31,633      28,325        79,021       76,322

    OTHER INCOME, Net           2,973       2,270         9,032        6,123

    INCOME BEFORE INCOME
     TAXES                     34,606      30,595        88,053       82,445

    PROVISION FOR INCOME
     TAXES                     12,534      11,453        32,327       30,539

    NET INCOME                $22,072     $19,142       $55,726      $51,906

    EARNINGS PER SHARE:
      Basic                     $0.77       $0.66         $1.93        $1.76

      Diluted                   $0.73       $0.64         $1.86        $1.69

    Basic weighted average
     shares                    28,847      29,033        28,902       29,484
    Diluted weighted average
     shares                    30,232      29,996        30,014       30,671



    THE BUCKLE, INC.

    BALANCE SHEETS
    (Amounts in Thousands Except Share and Per Share Amounts)
    (Unaudited)

                                               February 3,       January 28,
    ASSETS                                        2007                2006

    CURRENT ASSETS:
      Cash and cash equivalents                  $35,752             $23,438
      Short-term investments                     115,721             134,672
      Accounts receivable, net of allowance of
       $72 and $94, respectively                   4,046               4,824
      Inventory                                   70,306              68,731
      Prepaid expenses and other assets           12,401               6,894
               Total current assets              238,226             238,559

    PROPERTY AND EQUIPMENT:                      215,630             199,618
      Less accumulated depreciation and
       amortization                             (121,811)           (108,222)
                                                  93,819              91,396

    LONG-TERM INVESTMENTS                         31,958              41,654
    OTHER ASSETS                                   4,195               2,657

                                                $368,198            $374,266

    LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES:
      Accounts payable                           $14,670             $11,119
      Accrued employee compensation               17,800              20,096
      Accrued store operating expenses             4,468               3,725
      Gift certificates redeemable                 6,709               5,495
      Income taxes payable                         5,562               4,696
               Total current liabilities          49,209              45,131

    DEFERRED COMPENSATION                          3,368               2,518
    DEFERRED RENT LIABILITY                       29,034              26,824
               Total liabilities                  81,611              74,473

    COMMITMENTS

    STOCKHOLDERS' EQUITY:
      Common stock, authorized 100,000,000
       shares of $.01 par value; issued and
       outstanding; 29,408,576 shares at
       February 3, 2007 and 19,339,153 shares
       at January 28, 2006                           294                 193
      Additional paid-in capital                  43,493              39,651
      Retained earnings                          242,800             261,948
      Unearned compensation - restricted stock        --              (1,999)
               Total stockholders' equity        286,587             299,793

                                                $368,198            $374,266

Source: The Buckle, Inc.

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